Cal-COBRA differs from federal COBRA primarily because Cal-COBRA:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cal-COBRA is California's state continuation law: it extends health coverage for employees of small employers that fall below the federal COBRA threshold, so workers who would otherwise lose coverage when leaving a job, reducing hours, or losing eligibility can continue under the group plan at their own expense. Federal COBRA generally applies to employers with 20 or more employees, leaving a gap that Cal-COBRA fills for smaller groups. The two statutes work side by side rather than overlapping, and agents must know which continuation law governs a particular group before counseling a departing employee.
Why the other options are wrong
- B) Cal-COBRA operates alongside federal COBRA for smaller employers; it does not replace COBRA for large employers, so the 'replaces' description inverts the relationship.
- C) Cal-COBRA is private group continuation coverage regulated by California insurance law, not a Medi-Cal hospital program, so this confuses continuation coverage with public assistance.
- D) Cal-COBRA covers employees of private small employers generally, not only government workers and retirees, so this answer wrongly limits its scope.
Memory hook
Federal COBRA is for big employers; Cal-COBRA is California's continuation safety net for the small ones.